ASML Holding N.V. (ASML) vs Lam Research Corporation (LRCX)

ASML Holding N.V. and Lam Research Corporation are both Semiconductor Equipment & Materials companies. ASML Holding N.V. is the larger, with a market value of $673.5B against $390.4B — 1.7× the size. ASML Holding N.V. trades at the lower P/E: 54.2× against 54.4×. Lam Research Corporation grew revenue faster over the last twelve months: 26.0% against 17.6%. Lam Research Corporation has the higher net margin (31.3% vs 30.1%) and the lower return on invested capital (48.2% vs 48.3%). Both pay a dividend; Lam Research Corporation yields more (0.90% vs 0.80%). Across the 22 metrics below, ASML Holding N.V. leads on 15 and Lam Research Corporation on 7.

Valuation

Metric ASML LRCX Semiconductor Equipment & Materials median
P/E 54.21 54.44 54.39
P/S 16.28 17.03 6.08
P/B 30.22 31.72 4.89
Price to free cash flow 60.12 80.88 60.92
EV/EBITDA 42.21 45.57 39.95
EV/Sales 16.17 16.95 6.36
Earnings yield 1.84% 1.84% 1.14%
Free cash flow yield 1.66% 1.24% 1.28%

Profitability

Metric ASML LRCX Semiconductor Equipment & Materials median
Gross margin 52.76% 50.47% 43.95%
Operating margin 35.44% 35.29% 10.32%
Net margin 30.14% 31.27% 7.45%
Free cash flow margin 27.08% 21.05% 6.77%
Return on equity 0.00% 65.07% 4.78%
Return on assets 22.71% 32.38% 3.62%
Return on invested capital 48.33% 48.23% 6.10%

Growth

Metric ASML LRCX Semiconductor Equipment & Materials median
Revenue growth (TTM) 17.63% 26.02% 14.60%
EPS growth (last fiscal year) 34.25% 38.80% —
Revenue growth, 5-year CAGR 18.28% 9.70% 8.85%
Net income growth, 5-year CAGR 21.78% 13.20% 0.00%

Health

Metric ASML LRCX Semiconductor Equipment & Materials median
Debt to equity 0.09 0.30 0.09
Current ratio 1.33 2.63 3.66
Net debt to EBITDA (0.72) (0.21) (0.49)

Dividend

Metric ASML LRCX Semiconductor Equipment & Materials median
Dividend yield 0.80% 0.90% 0.85%
Payout ratio 0.31 0.21 0.00

Size

Metric ASML LRCX Semiconductor Equipment & Materials median
Market cap 673.45b 390.42b 4.63b

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